Doubts linger over Air Malta executive chairman’s departure

Malta Tourism Authority head Louis Farrugia was yesterday appointed Air Malta chairman after the executive chairman asked not to continue serving in his post, insisting the reason would remain confidential for the time being.

Mr Farrugia has relinquished his post at the tourism authority and his deputy, Ray Fenech, was appointed acting chairman instead.

Air Malta’s outgoing chairman, Sonny Portelli, refused to comment on the reasons for his decision to leave when contacted.

“At some point you have to take care of your priorities in life. The time has come for me to say enough is enough,” Mr Portelli said.

Asked about rumours that his departure was linked to friction between him and Finance Minister Tonio Fenech on the airline’s restructuring plan, Mr Portelli said this was speculation but insisted the reasons had to remain confidential for now.

“This is a particularly difficult time for Air Malta and I wish all the best of luck to my successor for the good of the airline and the country. I will not enter into this sort of speculation into the reasons which, certainly at this point, need to remain between me and the government.”

In a statement, the government said Mr Portelli’s term of office had come to an end.

Mr Portelli said he informed the minister in writing on Thursday that he did not wish to be considered for reappointment to the board. The official letter, which was published by the government yesterday, quotes time constraints as the reason for Mr Portelli’s departure.

Acknowledging Mr Portelli’s request, the minister wrote back yesterday thanking him for his leadership over the past year, especially in the run up to the submission of the restructuring plan to the European Union.

Mr Portelli’s departure means the airline’s top management has changed completely in a matter of months. Chief executive Joe Cappello, chief operating officer Brock Friesen and chief financial officer Alfred Lupi have also left the airline.

The news of Mr Portelli’s departure came 24 hours after Air Malta announced the appointment of Australian Ray Hart as chief restructuring officer. He will be working under the direction of the recently-appointed chief executive Peter Davies.

Mr Farrugia is the chairman of the group executive board of Simonds Farsons Cisk plc and chairman of the board of directors of Multigas Ltd, Liquigas Malta Ltd and Farrugia Investments Ltd. He had been heading the MTA for more than a year.